Latest Car News in India

Hyundai registers 8.9 percent growth in domestic market, Elantra sedan doing well

Is it a transitory phase or the Indian car industry is getting sick gradually, this needs a special research. After Maruti, that had obvious reason in the form of Manesar crisis for negative growth, India’s second largest car maker Hyundai has also reported a decline of 8 percent in growth in August. However, for reasons unknown and beyond comprehension. Hyundai cars such as Hyundai Eon, Hyundai i10 along with small cars Hyundai i20 and Hyundai Santro have tried their best to push sales but the total sales in August stagnated at 46,886 units which is lower than the units it sold in August last year.

The total sales in August is 8 percent lower than in the same month last year when Hyundai sold 51,012 units. In this the company sold 28,257 Hyundai cars in India which is over 5.9 percent compared to the same period last year. As per the reports, the real culprit of a negative growth is the exports. The company has reported a decrease in exports by 23.4 per cent mainly due to low demand in the regions Hyundai exports its cars from India. As per the sources information, the slow growth in the domestic market is due to the inflation, high fuel prices and high interest rates. Also, the absence of any diesel offering in the entry level Hyundai cars such as Eon, Santro, i10 are also responsible for feeble growth. Whereas Tata has received a growth of 33 percent over last year due to the fact that it has a volume puller under Rs 2 lakh car Tata Nano and that its Tata Indica entry level car is available in diesel.

It is believed that Hyundai is very aggressively thinking on launching Hyundai i10 Diesel and Hyundai Eon Diesel and it could be possible that these cars see a launch this year or early next year. The recently launched Hyundai Elantra has also done well and it has received 608 unit sales while only 19 Sonata sedan could be sold in month of August. The Hyundai Verna sedan on the other hand has done well and along with the Hyundai Accent car, it has added 6145 units to the sales figure. Also, since the festive season is nearby, people seem to have postponed their car buying till that time as in India, people believe to make car purchase during Diwali which is in November.